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</html>";s:4:"text";s:25428:"Absorption. The company that acquires the business is called the purchaser company and the Amalgamation, Absorption & External reconstruction State whether TRUE or FALSE 1. 10 each. Made By RS 2. Alteration of Share Capital and Internal Reconstruction 16. Amalgamation Absorption External Reconstruction. April 27, 2021 0 Comments internal reconstruction questions with solutions pdf mcq Free download in PDF Company Accounts Objective Type Questions and Answers for competitive exams. On 31st March, 2012, Thin Ltd. was absorbed by Thick Ltd., the latter taking over all the assets and liabilities of the former at book values. (c) external reconstruction (d) amalgamation 11. Reconstruction is a process of the company’s reorganization, concerning legal, operational, ownership and other structures, by revaluing assets and reassessing the liabilities. A new company is floated to take over their business. Amalgamation, Absorption and External Reconstruction 7. ... D External reconstruction. When two or more companies carrying on similar business decide to combine, a new company is formed, it is known as ..... (A)Amalgamation (B)Absorption (C)Internal reconstruction (D)External reconstruction 16. There are many forms of business combinations to obtain the economies of large scale production or to avoid the cut throat competition. Internal Reconstruction : The followings are the process / journal entries for making internal reconstruction – Thereby, amalgamation includes absorption. Internal Reconstruction 8. External reconstruction b. absorption c. amalgamation 4. Notes - Free download as PDF File (.pdf) or read online for free. Amalgamation, Absorption and External Reconstruction of Companies 15. Amalgamation and absorption Loss or profit on realization a/c is transferred by the transferor company. Reconstruction and amalgamation by Voluntary Winding Up A compromise involves a settlement of a dispute. AS – 1 b. it is confusing Merger c. Pooling of interest d. All the above 5. Differences between absorption and external reconstruction 1. THEORY. Funds Flow Statement. Internal reconstruction b. Absorption c. External reconstruction d. Amalgamation 56. Accounting for external reconstruction The accounting procedure in case of external reconstruction is the same as in case of amalgamation or absorption in the nature of purchase. Budget and Budgetary Control. meaning of external reconstruction when one company changes its external structure than it is known as external reconstruction. If the acquirer revalues the assets of acquiree on amalgamation, it is a case of a. When two or more companies carrying on similar business decide to combine, a new company is formed, it is known as ..... (A)Amalgamation (B)Absorption (C)Internal reconstruction (D)External reconstruction 16. C. Absorption D. None of the above 15. Closing the books of vendor company or transferor company 4. In Corporate Accounting, absorption means an existing company taking over one or more companies. A feature which is common in all cases of merger viz. Corporate Accounting 500 MCQs . a. external reconstruction b. absorption c. amalgamation 3. if the business of ABC Limited , a loss-making company is taken over by a new company ABC (New) Limited ,it is called a. However, one should remember that Amalgamation as its name suggests, is nothing but two companies becoming one. Amalgamation is when two or more companies merge. The consideration is as follows: (iii) A payment of Rs 1.5 per share in cash and allotment of one 14% preference share of Rs 10 each and 5 equity shares of Rs 10 each fully paid for every 4 shares in Wallace Ltd. External reconstruction a. 232]: Amalgamation: Amalgamation occurs when two or more companies are joined to form a third entity or one is absorbed into or blended with another”. 1. II each and pay Re. Absorption: It is the process in which one existing company takes over the other existing company and merges together as a single unit. Funding of Mergers and Takeovers 11. Two or more companies are wound up and . Ascertainment of discharge of purchase consideration 3. Absorption and Reconstruction. Holding Company 10. Select Course Validity Period. They are amalgamation, absorption, external reconstruction etc. AS – 14 - Amalgamation, Absorption & External Reconstruction (excluding inter – company holding) In the nature of merger and purchase with corresponding accounting treatments of pooling of interests and purchase method respectively. When amalgamation is affected, some or all the assets and liabilities of the vendor companies, are transferred to the vendee company. Similarly, the shareholders of the old entity turn out as the shareholders of the amalgamated entity. Equity Shareholders A/c c. Profit and loss Appropriation A/c d. None of the above 57. Differences between amalgamation and external reconstruction 1 Revised 'Accounting Standard (AS) 14- Accounting for Amalgamations' is applicable for the accounting periods commencing on or after April 1, 2017 after considering Companies (Accounting Standards) Amendment Rules, 2016 (G.S.R. (ii) External reconstruction (44) X Ltd. goes into liquidation and an existing company Z Ltd. purchases the business of X Ltd. It is a case of— (i) Absorption (ii) External reconstruction (iii) Amalgamation. Amalgamation and External Reconstruction: Problem # 4. Foe e.g. Accounts of Hotel Companies 10. Amalgamation of Companies. Right and Bonus Shares 14. 3. Funds Flow Statement. The term includes absorption Ans. Amalgamation, Absorption and External Reconstruction. About Author ABSORPTION They are amalgamation, absorption, external reconstruction etc. ----- company is the owner of the proportionate net asset of the transferor … One new company is specifically incorporated to take over another existing loss making company. Real life example: Hero + Honda = Herohonda. Valuation of Shares 12. External reconstruction 4. Two or more companies combining to form a new company is called absorption. Management Accounting MCQs. Calculation of purchase consideration 2. 3. Accounting procedure for Amalgamation, Absorption and External Reconstruction. 9 13 11 14 11 1 Meaning and Computation of purchase consideration. 1. April 19th, 2019 - Difference between Amalgamation Absortpion and External Reconstruction Amalgamation Absorption and External Reconstuction part 1 by CMA Tarun Differences Between Consolidation and Merger Difference between Company Merger amp Amalgamation April 16th, 2019 - Best Answer Dear rudresh d the word merger or amalgamation means (c) external reconstruction (d) amalgamation 11. Valuation of Goodwill 13. Basis Amalgamation Absorption External Reconstruction Meaning . Absorption means one powerful company takes control over the weaker company. a. Method to calculate Purchase Consideration: Merger: Amount paid to Equity shareholders only in the form of equity shares in purchasing company except cash for fraction of shares. (ii) External reconstruction (44) X Ltd. goes into liquidation and an existing company Z Ltd. purchases the business of X Ltd. Reconstruction of companies • External reconstruction :- Term is used when one existing company goes into liquidation and a new co. is formed to take over its business. is business of an Amalgamation of companies results in combination of companies, but external reconstruction does not result in any such combination. 0.50 cash per share held by members of Z Ltd. (2) 9% debentures of Z Ltd. are to be paid at 8% premium by issue of a sufficient number of 10% debentures of A Ltd. @ Rs. absorption. Free download in PDF Company Accounts Objective Type Questions and Answers for competitive exams. [Oct.12] Problem 7] The following was the Balance Sheet of Poonam Ltd. as on 31.3.2011 Balance Sheet as on 31st March, 2011 The scheme of reconstruction was agreed as follows : (a) A new company to be formed “Sonam Ltd.” with an authorized capital of Rs. When the merger involves liquidation of one existing sick company and formation of one new company, it is called (a) internal reconstruction (b) absorption (c) external reconstruction (d) amalgamation 12. When the merger involves liquidation of one existing sick company and formation of one new company, it is called a) internal reconstruction b) absorption c) external reconstruction d) amalgamation 12. Accounts of Electricity Companies 9. Amalgamation: The term amalgamation is used when two or more existing companies carrying on similar business go into liquidation and a new company is formed to take over the business of liquidated companies. Financial Restructuring 12. Understand … - Selection from Corporate Accounting [Book] These points are peculiar to absorption of companies. If the acquirer revalues the assets of acquiree on amalgamation, it is a case of a. Under amalgamation to a. For e.g. All the combining companies are liquidated. Amalgamation of companies results in combination of companies, but external reconstruction does not result in any such combination. Take this Course *Excluding ... AMALGAMATION, ABSORPTION AND EXTERNAL RECONSTRUCTION. View Answer Answer: Amalgamation ... Realisation A/c 33 If the market price of the shares to be given for Purchase Consideration at the time of absorption, of the share is to be determined A Intrinsic Value. Interest of the Small Investors in Mergers 7. Understand the difference types of “amalgamation”. The upcoming discussion will update you about the difference between External Reconstruction and Amalgamation. Differences between amalgamation and external reconstruction. (ii) External reconstruction (44) X Ltd. goes into liquidation and an existing company Z Ltd. purchases the business of X Ltd. A company is a "legal" person. Foe e.g. Amalgamation Absorption External reconstruction Any of the above Any of the above 1 20 If Vijay Ltd. and Vishakha Ltd. are taken over by Swati Ltd. a new company it is called _____. Absorption External reconstruction Amalgamation Internal reconstruction Amalgamation 1 21 Conversion of currency is covered in AS _____. Solved Questions: No. Downloadable PDF Notes. Merger c. Pooling of interest d. All the above 5. if a new company X (New) Ltd. Is formed to take over the business of an existing co. X Ltd. Then it is a case of External reconstruction 3. Real life example: Hero + Honda = Herohonda. External Reconstruction: Absorption: It is the process in which one existing company takes over the other existing company and merges together as a single unit. View Answer Answer: Amalgamation ... Realisation A/c 33 If the market price of the shares to be given for Purchase Consideration at the time of absorption, of the share is to be determined A Intrinsic Value. In the nature of merger and purchase with corresponding accounting treatments of pooling of interests and purchase method respectively. a) Amalgamation b)External reconstruction c) Absorption d)Internal reconstruction 8. Meaning: Amalgamation is a fusion between two or more companies to consolidate their business activities by establishing a new company having a separate legal existence. a picture/power point dump is very useful for the students like me. The difference between Amalgamation and Absorption is that amalgamation is the merging of two or more companies to form a new company, absorption means when a company undertakes another company but does not form a new company. Absorption of companies involves combination of companies, whereas external reconstruction does not involve any combination. Purchase b. There are many forms of business combinations to obtain the economies of large scale production or to avoid the cut throat competition. Accounting procedure for Amalgamation, Absorption and External Reconstruction. External reconstruction 4. 90. Amalgamation: It is the process in which two or more existing companies joins together and start new company wi th new name and identity and dissolves the existing companies. When two or more companies carrying on similar business decide to combine, a new company is formed, it is known as ..... (A) Amalgamation (B) Absorption (C) Internal reconstruction (D) External reconstruction 2. a) Amalgamation b) Absorption c) Internal Reconstruction d) External Reconstruction 25) The main object of Amalgamation is ..... a) To maximum common benefits b) To reduce Internal Competition c) To minimize Common Expenses d) All the above 26) Excess of purchase consideration over net asset is ..... a) Profit b) Goodwill absorption, amalgamation and external 1. Internal Reconstruction. Accounts of Insurance Companies 8. ABSORPTION. 1 Answer to Reconstruction A/c’ is used in the case of a.external reconstruction b.internal reconstruction c.amalgamation d.absorption a new company. Ascertainment of discharge of purchase consideration 3. C. Absorption D. None of the above 15. external reconstruction. Passing opening entries in the books of purchasing company or transferee company Ans. it is confusing EXTERNAL RECONSTRUCTION. Meaning of Absorption. Amalgamation: Absorption: External Reconstruction : 1. Accounting for amalgamation is governed by a. ... D External reconstruction. 23 Videos . It is a case of— (i) Absorption (ii) External reconstruction (iii) Amalgamation. In amalgamation, the identity of both the companies exist and survive. One existing company takes over business of other one or more existing company. Calculation of purchase consideration 2. Example: Business of X ltd is transferred in to a new X Ltd is an example of External reconstruction. In _____ a new company is formed to take over the business of two or mor e existing companies which go into liquidation . External reconstruction a. Under amalgamation to a. Corporate Demergers and Reverse Mergers 9. ACCOUNTING FOR AMALGAMATIONS The accounting issues pertaining to amalgamation as defined under the provision of the companies act’1956 are dealt under Accounting Standard (AS) 14 as evolved by the institute of charted accountant of India. reconstruction. Merger b. 6,00,000 all in equity shares of Rs. Ratio Analysis. There are differenent types of rules and provison are there. Absorption is the process in which the one leading company takes control over the weaker company. Amalgamation vs Absorption. A feature which is common in all cases of merger viz. There are differenent types of rules and provison are there. A feature which is common in all cases of merger viz. Valuation of Shares 12. (i) Absorption (ii) External reconstruction (iii) Amalgamation. It is a case of— (i) Absorption (ii) External reconstruction (iii) Amalgamation. Accounting for Amalgamation, Absorption and External Reconstruction 1. a. 5. A company thus has legal rights and obligations in the same way that a natural person does. A new company is floated to take over their business. c) external reconstruction d) amalgamation 11. a)Amalgamation b) External reconstruction c)Absorption d) Internal reconstruction 3. absorption, amalgamation and external Amalgamation and External Reconstruction: Problem and Solution # 2. Understand the vital factors that have significant accounting impact. the companies may declare and pay dividends before the absorption is complete. In external reconstruction an existing company is taken over by a newly formed company whereas in amalgamation two or more companies are taken over by a newly formed company or one or more existing companies are absorbed or taken over by an existing company. They are amalgamation, absorption, external reconstruction etc. Equity Shareholders A/c c. Profit and loss Appropriation A/c d. None of the above 57. Valuation of Goodwill 11. For More Information - Read FAQ. Ans. There are two methods of reconstruction which are internal reconstruction and external reconstruction. Financial, Stamp Duty and Taxation Aspects of Amalgamation 6. Preference shareholders A/c b. Absorption and Reconstruction. Absorption A New Company X is formed to take over the business of an existing company Y which is wound up. AMALGAMATION. Accounts of Holding Companies. AMALGAMATION AND INTERNAL RECONSTRUCTION 16 MARKS''INNER ACCOUNTING SM May 6th, 2018 - Basis Internal Reconstruction External Reconstruction details need to be shown in notes to or Reconstruction Account The accounting treatment is as' 4 / 12 ABSORPTION Amalgamation of Banking and Government Companies 8. 2. Note : In Amalgamation & Absorption there is combing of two or more business & are covered by AS-14 External Reconstruction: When a new company is formed to take over an existing company it is known as external reconstruction. Loss or profit on realization a/c is transferred by the transferor company. Fast Ltd. After absorption. All the combining companies are liquidated. 9 Amalgamation, Absorption and External Reconstruction LEARNING OBJECTIVES After studying this chapter you should be able to: Know the various meanings of the terms “amalgamation”, “absorption” and “external reconstruction”. The document Absorption - Amalgamation of Companies, Advanced Corporate Accounting B Com Notes | EduRev is a part of the B Com Course Advanced Corporate Accounting . ALREADY PROVIDED CA IPCC ACCOUNTS NOTES PDF AMP STUDY FROM AMALGAMATION INTERNAL RECONSTRUCTION' 'INNER ACCOUNTING SM May 6th, 2018 - Basis Internal Reconstruction External Reconstruction details need to be shown in notes to or Reconstruction Account The accounting treatment is as''LINGUISTICS 407 Lecture 7 THE METHOD OF INTERNAL AMALGAMATION ABSORPTION AND EXTERNAL RECONSTRUCTION AMALGAMATION When two or more existing companies combine together to form a new company, it is amalgamation. The purchase of an existing company which goes into liquidation by another existing company is known as _____. Since absorption involves two existing companies, there may be earlier transactions between the companies, such as, sale of goods, acceptances, loans etc. 5 External Reconstruction of Companies 6 Accounting for Banking Companies 7 Accounting for Insurance Companies ... corporate body it is related to the subject matter of amalgamation, absorption and reconstruction of companies. Post Merger Re-Organisation 13. 6. Price. 2. Chapter Wise MCQs . Passing opening entries in the books of purchasing company or transferee company Unlimited Views. External reconstruction TYPES OF AMALGAMATION Amalgamation in the nature of merger: In this type of amalgamation, not only is the pooling of assets and liabilities is done but also of a picture/power point dump is very useful for the students like me. All the combining companies are liquidated. There are no book in india i have seen where difference among the amalgamation,absorption,external reconstruction,marger has been cleared. Video Lectures: No. So, Amalgamation includes absorptions. auther of the books has contradicted to each other. Accounts of Holding Companies 14. Closing the books of vendor company or transferor company 4. Unit – III: AS – 14 - Amalgamation, Absorption & External Reconstruction (excluding intercompany holdings) 20 L 1. Amalgamation: It is the process in which two or more existing companies joins together and start new company wi th new name and identity and dissolves the existing companies. In Corporate Accounting, absorption means an existing company taking over one or more companies. (i) Absorption (ii) External reconstruction (iii) Amalgamation. Takeovers 10. Amalgamation is defined as the combination of one or more companies into a new entity. REVISED SCHEME OF AMALGAMATION- Scheme Of Amalgamation-OEL.pdf This Scheme of Amalgamation is presented 3D Reconstruction of Emission and Absorption in Planetary Nebulae 2011-03-14آ Volume Graphics (2007) Ex: A Ltd. and B Ltd. are taken over by a newly formed company C Ltd. Such external reconstruction is essen-tially covered under the category ‘amalgamation in the nature of merger’ in AS (Accounting Standard) 14, Accounting for Amalgamations. It is the conversion of two companies and two balance sheets into one company and one (combined) balance sheet. Preference shareholders A/c b. At that time, one or more companies must close their business and existing company will operate one or more company who are being absorbed by it. Reconstruction , Merger and Amalgamation [Sec. Amalgamation of Companies. 2. Amalgamation, Absorption & External reconstruction Multiple Choice Questions 1. Banking Company 11. a)Amalgamation b) External reconstruction c) Absorption d) Internal reconstruction 9. a) AS 10 b) AS 12 c) AS 14 d) AS 16. EXAMPLE: - XLTD = YLTD IN ABOVE EXAMPLE CONPANY HAS CHANGED ITS NAME IE EXTERNALLY IT HAS CHANGED NOW. These are two business strategies adopted by the companies to expand itself and take a competitive position in the market. From the point of view of an accountant, external reconstruction is similar to amalgamation in the nature of purchase; the books of the transferor company are closed and in the books of the transferee company, the purchase of the business is recorded. Redemption of Preference Shares and Buy Back of Equity Shares 9. Standard Costing. Management Accounting. Amalgamation involves the same entities and works as one, absorption involves a company that … c) external reconstruction d) amalgamation 11. Purchase b. Similar Like This. Know the When the merger involves liquidation of one existing sick company and formation of one new company, it is called a) internal reconstruction b) absorption c) external reconstruction d) amalgamation 12. External Reconstruction: Wallace Ltd. is absorbed by Bharat Ltd. Course Includes: 6 Classes . Problems on Amalgamation, Absorption and External Reconstruction Amalgamation Problem No.1: (MGP-1/5.24) The following is the Balance sheet of … Problems based on purchase method only. AMALGAMATION ABSORPTION AND EXTERNAL RECONSTRUCTION AMALGAMATION When two or more existing companies combine together to form a new company, it is amalgamation. Merger b. AS – 13 c. AS – 14 d. AS - 11 5. Marginal and Absorption Costing. amalgamation. Amalgamation and External Reconstruction: Problem # 3. in the transferor company for distribution among the shareholders of the company under liquidation. There are no book in india i have seen where difference among the amalgamation,absorption,external reconstruction,marger has been cleared. Reconstruction of companies • External reconstruction :- Term is used when one existing company goes into liquidation and a new co. is formed to take over its business. entrepreneur. Bookmark File PDF Amalgamation Accounting Problems And SolutionsSOLVE AMALGAMATION PROBLEM IN 7 STEPS Know the various meanings of the terms “amalgamation”, “absorption” and “external reconstruction”. External Reconstruction. Internal reconstruction b. Absorption c. External reconstruction d. Amalgamation 56. Real life example: Hero + Honda = Herohonda. ABSORPTION External Reconstruction – Transfer of business to another company (usually new company) persuing to a scheme of amalgamation – Accounting is same as amalgamation. It includes: Two or more companies join to form a new company. AMALGAMATION ABSORPTION AND EXTERNAL RECONSTRUCTION AMALGAMATION When two or more existing companies combine together to form a new company, it is amalgamation. a ) Absorption (b) Amalgamation (c) Internal reconstruction (d ) Ex ternal reconstruction 9. _____is concerned with accounting for amalgamation. Amalgamation refers to corporate reconstruction in which two or more companies come together and fuse to form a new company. Ratio Analysis 13. Ans. Absorption of companies does not involve formation of a new company, however, external reconstruction involves formation of a new company, 2. Meaning and Computation of purchase consideration. Cash Flow Statement. Amalgamation of companies involves liquidation of two or more companies, while external reconstruction involves liquidation of only one company, 2. Meaning of Absorption. When the merger involves liquidation of one existing sick company and formation of one new company, it is called (a) internal reconstruction (b) absorption (c) external reconstruction (d) amalgamation 12.A feature which is common in all cases of merger viz. auther of the books has contradicted to each other. 1. Amalgamation, as its name suggests, is nothing but two companies becoming one.On the other hand, Absorption is the process in which the one dominant company takes control over the weaker company. View AMALGAMATION OF COMPANIES.pdf from ECON 101 at Akron Comm Sch East. In computing purchase consideration by ‘net asset method’ all assets including fictitious assets should be considered. Two or more existing company decides to amalgamate & starts a new company. At that time, one or more companies must close their business and existing company will operate one or more company who are being absorbed by it. if a new company X (New) Ltd. Is formed to take over the business of an existing co. X Ltd. Then it is a case of External reconstruction 1. A new company is floated to take over their business. Absorption or blending of one by the other. An arrangement, in contrast, is broader and has been held to be of wide import. Financial Accounting (B.Com.,BAF,BBI,BMS & other) AMALGAMATION, ABSORPTION AND EXTERNAL RECONSTRUCTION MULTIPLE CHOICE D] External Reconstruction ";s:7:"keyword";s:56:"amalgamation, absorption and external reconstruction pdf";s:5:"links";s:958:"<a href="https://api.duassis.com/storage/xwqtu/strawberry-blonde-overtone">Strawberry Blonde Overtone</a>,
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